ADNOC Gas explores new UAE east coast LNG plant with Habshan recovery at 85%
Potential LNG facility to provide extra export flexibility as key gas complex recovers
Dubai: ADNOC Gas is exploring options for a new liquefied natural gas export facility on the UAE's east coast, potentially providing additional flexibility for LNG shipments outside the Strait of Hormuz.
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Chief Financial Officer Peter van Driel told Bloomberg Television on Monday that the company was considering options for the facility. No final decision has been taken and the potential project remains at an exploratory stage.
An east coast plant would provide another potential route for LNG exports outside the Strait. ADNOC Gas has not disclosed the possible capacity, investment cost, development timetable or precise location of any new facility.
The consideration comes after disruption to maritime movements through the Strait affected the company's product liftings during the second quarter.
ADNOC Gas said it worked with customers and partners while using inventory, logistics and supply-chain management to mitigate the impact, manage temporary constraints and fulfil commitments wherever possible.
Maritime disruption
The company has also incorporated continued maritime disruption into its near-term financial outlook.
ADNOC Gas expects third-quarter net income of $600 million to $800 million, based on an assumption that maritime routes through the Strait continue to face disruption.
For the full year, the company expects net income of $3.5 billion to $4 billion if maritime operations are fully restored by the fourth quarter of 2026 and pricing realisations normalise.
The potential east coast LNG facility therefore comes as ADNOC Gas assesses its future export infrastructure against a backdrop of recent disruption to a major regional maritime route.
Habshan recovery
Separately, ADNOC Gas said recovery at its Habshan complex has progressed faster than previously expected following security-related incidents at the site on April 3 and April 8.
Gas supply has already been restored to 85%, surpassing the year-end recovery target the company set in May.
ADNOC Gas said it has completed its technical assessment of the impact of the incidents and that recovery has progressed ahead of schedule.
The progress at Habshan marks a significant operational recovery during a quarter in which ADNOC Gas faced disruption both at one of its major processing sites and to maritime movements affecting product liftings.
